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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (91475)	6/13/2012 10:20:58 PM
From: bart13	Read Replies (1) \| Respond to of 217573

In sum, the Central Banks, in seeking to fend off deflation, want to see Gold and Silver stay at current levels. Do recall that FDR revalued gold to fend off deflation... and a rising gold & silver price would add substantially to inflation sentiment, even without much money printing. And then we have a need for CBs to have much more gold, to help back a quite possible new world currency. Just food for thought...

To: Hawkmoon who wrote (91475)	6/14/2012 5:51:49 AM
From: TobagoJack	1 Recommendation Respond to of 217573

(i) i suspect gold does best during sustained diaper debt deflation than when during sustained hyper credit inflation (ii) during sustained hyper credit inflation many if not most items and services rise in nominal value, and gold is merely on of most or many that is rising (iii) during sustained diaper debt deflation, most items and services get crushed, and cash stands gold may initially get sold off as the debt-ly crushed try best to meet a margin call before they get the life crushed out of them cash may initially not wobble until dilution-cash is printed up to 'meet the liquidity crisis' (iv) it would be an error to think of gold as a commodity in tune with iron, oil, gas, and copper, because gold has minuscule utility, cost much to locate, dig out, crush, and refine, and remain unquestionably one of the least useful metal lumps costing much to store, and it does not get used up in the senses of carbon energy and in the meaning of an old refrigerator (v) iow, gold is almost and just about totally pointless, as would a parachute on a boat or umbrella in a submarine but there are unique times when gold is that single parachute on a to-be-doomed plane, and that last life boat on the iceberg-ed ship (vi) remember, we are too early talking about gold bubble because we are in the middle of the largest paper bubble the planet has ever experienced the paper bubble shall burst, but not before a lot of savings are fed into gas flame to help keep the bubble aloft